A seismic shift is underway in the global business risk landscape, as the rapid and widespread adoption of artificial intelligence has fundamentally reordered corporate priorities in a way few could have predicted just a year ago. While the persistent and familiar danger of cyber incidents continues to cast a long shadow over enterprises worldwide, a landmark annual survey of risk management experts reveals that AI has emerged from the periphery to become a dominant, top-tier concern. This new reality is forcing companies to navigate a complex, dual-fronted challenge where established digital vulnerabilities are now compounded by the uncharted and transformative risks introduced by intelligent systems. The resulting turbulence is displacing long-standing operational threats and elevating geopolitical volatility, painting a picture of a world where technological disruption is the primary driver of uncertainty and strategic recalculation for businesses of all sizes.
The New Duality of Digital Danger
For the fifth consecutive year, the threat of cyber incidents remains the most significant and universally acknowledged risk facing global businesses. Cited by 42% of experts surveyed, its position at the top of the rankings is unshakable, holding the primary spot across every major economic region, from the Americas and Europe to Asia-Pacific and the Middle East. This unwavering dominance highlights the deeply entrenched nature of digital threats in the modern economy. From sophisticated ransomware attacks that can paralyze entire operations to massive data breaches that erode consumer trust and incur staggering regulatory fines, the cyber threat is a constant, evolving challenge. Its persistence underscores that even as new risks emerge, the foundational need for robust cybersecurity, data protection, and digital resilience has never been more critical for corporate survival and continuity in an increasingly interconnected and vulnerable world.
In stark contrast to the steady reign of cybercrime, the most dramatic development is the unprecedented ascent of artificial intelligence as a primary business threat. In what represents the largest year-on-year jump ever recorded in the survey’s history, AI has vaulted from its previous position as a secondary concern to become the second-biggest global risk, cited by 32% of respondents. This meteoric rise reflects a growing recognition of the profound and multifaceted challenges posed by the technology. As noted by industry leaders, while AI offers immense opportunities for innovation and efficiency, its transformative potential, rapid evolution, and widespread adoption are simultaneously reshaping the risk landscape. Concerns range from the potential for large-scale errors in AI-driven decision-making and the creation of sophisticated deepfakes for fraud to job displacement and the ethical dilemmas surrounding data privacy and algorithmic bias, making it a standout issue for firms worldwide.
A Cascade of Shifting Priorities
The powerful emergence of AI and the enduring threat of cyber incidents have created a ripple effect, displacing long-standing operational concerns that once dominated corporate risk registers. For the first time, business interruption has fallen from the top two positions, now ranking third globally. This indicates a significant pivot in focus among risk managers, from tangible, physical disruptions toward more abstract, technology-driven threats that can cripple a business without a single piece of equipment failing. Similarly, the perceived risk of natural catastrophes has declined to fifth place, a trend influenced in part by a relatively calmer 2025 hurricane season in terms of insured losses. This reshuffling suggests that while physical and operational risks remain important, the strategic conversation is now increasingly centered on the intangible yet potentially more devastating threats posed by digital and intelligent systems in a hyper-connected global economy.
Further complicating this new environment is the growing specter of geopolitical instability, which is rapidly climbing the ranks of business concerns. Political risks and violence have risen from ninth to seventh place, reflecting widespread anxiety over ongoing international conflicts, escalating trade tensions, and their direct economic consequences. This concern is not merely theoretical; analysis shows that the number of trade restrictions has tripled over the past year, directly impacting an estimated $2.7 trillion in merchandise. This has elevated the fear of systemic disruption to a critical level, with 51% of survey respondents identifying global supply chain paralysis due to geopolitical conflict as the most plausible “black swan” scenario likely to materialize in the next five years. This trend highlights the interconnectedness of technological and political risks, where a conflict in one part of the world can instantly disrupt digitally managed supply chains on a global scale.
Regional Divergence in a Globalized World
While global trends point toward a convergence of AI and cyber risks, a closer look at regional data reveals significant divergence in how these threats are perceived and prioritized. In Europe, 1,599 experts confirmed that cyber incidents remain the top concern, but AI made a powerful debut in the top three, signaling its arrival as a major disruptive force. This trend was even more acute in the United Kingdom, where AI surged to the second position, cited by an overwhelming 51% of respondents. The United States largely mirrored the global pattern, with AI ranking fourth. However, Canada stands out as a stark anomaly. There, regulatory and legislative changes have been identified as the premier business risk, while the concern over cyber incidents has plummeted to a distant seventh place. This dramatic deviation underscores how local regulatory environments and national priorities can create unique risk landscapes that defy global generalizations.
The Asia-Pacific region, meanwhile, appears to be at the forefront of the AI-driven risk transformation. Across the region, AI surged from ninth place to become the second-most-pressing concern, second only to cyber incidents. This shift is most powerfully illustrated in Australia, which offers a potential glimpse into the future of global risk management. In a striking departure from the norm, Australian experts have elevated artificial intelligence to the number one business risk, cited by 61% of respondents and surpassing even the long-standing threat of cyber incidents. This makes Australia the first major economy where the perceived risks of AI—from its implementation and regulation to its potential for misuse—have eclipsed all other corporate concerns. This development positions the country as a critical case study for how businesses globally might soon need to re-calibrate their strategies as AI becomes ever more integrated into the fabric of commerce.
Navigating a Transformed Risk Horizon
The global business risk environment underwent a fundamental and irreversible transformation. The era defined primarily by tangible operational threats like supply chain breaks and physical disasters gave way to a new paradigm dominated by the intangible yet profoundly disruptive forces of digital technology and geopolitical friction. The rapid integration of artificial intelligence was not merely an addition to the existing list of corporate worries; it acted as a powerful catalyst that reordered long-held priorities and exposed new vulnerabilities. This shift compelled organizations to look beyond traditional risk management frameworks, forcing a critical re-evaluation of strategies for resilience, security, and corporate governance. The dialogue moved from mitigating known disruptions to anticipating the unknown consequences of a technology that was reshaping industries at an unprecedented pace.
